Nifty 200 (NIFTY 200) live share price today at NSE

Nifty 200 Index - A Brief Introduction 

The Nifty 200 index is a broad-based market index that was launched by the NSE Indices Limited on 19th July 2011. The index measures the performance of the NSE-listed large and midcap companies. The Nifty 200 index includes all the companies from the Nifty 100 and Nifty Midcap 100 indices.  

The Nifty 200 index is a cluster of 17 sectors, where the financial services sector dominates the index with a 30.84% share, followed by the Oil & consumables Fuels (8.77%), Information Technology (10.53%), FMCG (7.38%), Automobiles and Auto Components (7.17%), and healthcare (5%).  

The Nifty 200 index is formulated using the free float market capitalisation method, and weights are assigned to each of the index's constituents. It carries a base value of 1000 and is subjected to rebalancing on a semi-annual basis. While rebalancing the index on the cutoff dates, i.e., 31st January and 31st July, the average date for the last six months is considered. 

• The National Stock Exchange (NSE) manages various indices through its subsidiary, NSE Indices Limited. 
• The Nifty 200 index is a stock market index that is an amalgamation of the Nifty 100 and the Nifty Midcap 100. 
• It is a broad index that tracks the performance of the companies included in the large and mid-cap segments. 
• This index is subject to a semi-annual rebalancing and carries a base value of 1000. 
• The Nifty 200 index represents companies across 17 sectors of the stock market. 

Nifty 200 Index - Eligibility Criteria

These are the following criteria that companies are required to meet to become a part of the Nifty 200 index:

1. Stocks from the Nifty 100 and Nifty Midcap 100 indices are included in the Nifty 200 index.
2. Any changes occurring in the Nifty 100 and Nifty Midcap 100 indices are reflected in the Nifty 200 index. 
3. Constituents of the index are selected according to their free-float market capitalisation method. 

Nifty 200 Index - Formula & Calculation

The value of the Nifty 200 index is determined by calculating its constituents' free-float market capitalisation value. ‘Free-float’ refers to the number of shares available for public trading, excluding restricted shares. 

Nifty 200 Index Formula = Free-float market capitalisation value/(base market capitalisation*base index value)

Using the formula mentioned above ensures that the constituents of the index represent their true value and the index can track real-time movements of the market. If the index requires any rebalancing at the stipulated time period, then a notice is given to the market for the same 4 weeks before the date of change. 

How can I invest in the Nifty 200 index?

Individual stock selection 

You can identify and invest in the individual stocks of the Nifty 200 index. However, this is an expensive and time-consuming method because creating a portfolio of stocks replicating the Nifty 200 requires a tremendous amount of research and analysis and a large amount of capital. 

Derivative Trading

You can buy and sell future and option contracts of the Nifty 200 index to benefit from the fluctuations in the value of the index and its derivative contracts. However, investors must ensure that they understand the intricacies of the derivative market and have the required risk tolerance levels.

Mutual Funds and ETFs

 Mutual Funds or Exchange Traded Funds are the indirect way of investing in the Nifty 200 index. This method requires less capital and carries a lower risk than the other methods. You can invest in mutual funds and ETFs that replicate the composition and performance of the Nifty 200 index, though in small amounts at regular intervals. 

Key takeaways

• The Nifty 200 is a broad-based index introduced by the National Stock Exchange (NSE) that evaluates the performance of large and mid-cap companies. 
• It was launched on 19th July 2011 with a base value of 1000 and is reviewed semi-annually. 
• The Nifty 200 index includes 200 stocks from the Nifty 100 and Nifty Midcap 100 indexes. 
• The index's constituents are spread over 17 sectors, with the financial services sector being dominant, with a share of 30.84%